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2014 (9) TMI 348 - ITAT MUMBAIExcess consumption of raw material – Held that:- As decided in M/s. Parle Biscuits Pvt. Ltd. Versus Addl. CIT. Cent. Mumbai[2010 (8) TMI 881 - ITAT MUMBAI] - It has been decided that if the formula of 108.190 is to be applied for the CMUs, then it is necessary that adjustments which are allowed in case of own manufacturing units of the assessee should also be allowed in case of the CMUs – thus, the matter is to be remitted back to the AO to allow such adjustments after making necessary verification – Decided in favour of assessee. Transfer pricing adjustment – Various international transactions with AE – Held that:- The transactions involving payment of share application money cannot be treated as international transactions of loans given by the assessee company to its AE merely because there was a delay in allotment of shares – following the decision in Bharti Airtel Limited (Bharti Crescent) Versus Additional Commissioner of Income Tax Range 2, New Delhi [2014 (3) TMI 495 - ITAT DELHI] - the interest rate of LIBOR plus 200 basis point therefore should be taken as arm's length rate of interest to bench-mark the international transactions of the assessee company with its AE involving giving the loans on interest - the AO/TPO is directed to re-compute the TP adjustment to be made in respect of the loan transactions by applying the arm's length rate of interest of LIBOR plus 200 basis point – Decided partly in favour of assessee.
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